Rachael Markham

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(UK) ‘Substitution First, Standing Later’ – The Risk of Supporting Creditors

The case of Liberty Commodities Ltd v Citibank NA London & Ors [2023] EWHC 2020 (Ch) provides a helpful reminder of the principles that the court will adopt when dealing with a winding up petition – particularly where there are supporting creditors. Even when the company and petitioning creditor have reached agreement in respect of the petition debt … Continue Reading

(UK) HMRC and Restructuring Plans: The Next Chapter

A thorny question facing a company when considering a Restructuring Plan is how to deal with HMRC particularly following HMRC’s opposition to recent plans. Creditors now have some assistance in these deliberations thanks to guidance published by HMRC setting out how they will approach discussions with companies considering a Restructuring Plan. The guidance reflects the … Continue Reading

(UK) Have You Got Consent? Dealing with Administration Extensions

Although an initial administration extension can be dealt with by consent, if that consent is not valid the extension will also be invalid.  This leaves administrators in a difficult position because they will not be in office unless the court remedies the position.  Obtaining consent might seem straightforward but obtaining the consent of secured creditors … Continue Reading

Are UK Restructuring Plans Still too Expensive?

As far as they go, restructuring plans have worked well since they were first introduced 3 years ago.  This is reflected in the most recent review of CIGA published by the Insolvency Service which reflects favourably on this new insolvency measure. However, there are still some barriers to its use. Not unsurprisingly costs are quoted … Continue Reading

Expected Changes to the UK Corporate Moratorium

The three year review of CIGA (the Corporate Insolvency and Governance Act) published by the Insolvency Service suggests that we might see changes to the corporate moratorium process – will these address concerns about the process and encourage more insolvency practitioners to recommend its use? The moratorium aims to protect companies from enforcement action to … Continue Reading

Are HMRC Critical To UK Restructuring Plans?

It’s now level pegging for HMRC on cram down –  twice it has been crammed down, and twice it has not. In the most recent restructuring plan proposed by Prezzo, the court sanctioned the company’s restructuring plan and crammed down HMRC as both preferential and unsecured creditor.  Unlike Houst’s restructuring plan, where HMRC was also … Continue Reading

Latest Market Guidance on the National Security and Investment Act 2021 (“NSIA”) is not particularly comforting to UK restructuring professionals

The NSIA is aimed at safeguarding national security and only applies to certain transactions occurring within certain sectors where national security might be threatened.  There are 17 sectors in total, including energy, transport, and communications.   Depending on the transaction, the NSIA may require a purchaser to notify the Secretary of State of an acquisition to … Continue Reading

“It’s the principle of the thing”: HMRC fights back against UK Restructuring Plans

‘If, at first, you don’t succeed, then try and try again’ is a fitting description for HMRC’s recent approach to restructuring plans, with its opposition of plans proposed by The Great Annual Savings Company (GAS) and Nasmyth Group Limited (Naysmyth). The GAS sanction hearing (which is due to take place this week) will be the … Continue Reading

(UK) Stripped and Outnumbered: Compromising Guarantee Claims in a CVA 

A company voluntary arrangement (CVA) is a tool which has been widely utilised by companies seeking to restructure and compromise liabilities. In recent years CVAs have been in the limelight because of attacks by landlords who feel that they have been unfairly prejudiced by the CVA terms.  Largely, challenges such as those to the Regis … Continue Reading

(UK) 2023: The Year of the Restructuring Plan?

It is difficult to predict what 2023 might hold for businesses in the UK.  Given the difficult economic environment, many will already be facing a challenging start to the year.  Although the challenges of the pandemic (such as lock downs) have gone, others have materialised. Energy price hikes and inflation rises continue to make trading conditions tough. At some point in 2023 affected businesses may have to restructure, and others may need to enter a formal process. … Continue Reading

The Register of Overseas Entities From a Restructuring and Insolvency Perspective

The requirement for overseas entities to register or be registered on the UK Register of Overseas Entities (ROE) at Companies House could impact certain transactions that insolvency practitioners (IPs) and lenders are involved with.  Our latest quick guide highlights some of those areas and flags points for IPs and lenders to consider when dealing with … Continue Reading

To Complete or not to Complete – “Early” Completion of Company Voluntary Arrangements (UK)

Can a Company Voluntary Arrangement (“CVA”) complete, but still remain in place and bind creditors? The simple answer is yes; but it does require (a) the terms of the CVA to be carefully drafted to allow notice of completion to be filed before the end of the CVA term; (b) compliance with the terms of … Continue Reading

Understanding Pandemic Supply Chains

Supply chain disruption was exacerbated by the pandemic, and due to the ongoing conflict in Ukraine problems continue to impact UK businesses. Unfortunately there is no sign of disruptions abating in the short term. In a recent webinar Sarah Rathke explored the question: “Why is Everything Broken? Understanding Pandemic Supply Chains” which is available to view … Continue Reading

Energy Prices Decrease as Interest Rates Increase – where does this leave UK Businesses?

Following the UK government announcing that UK businesses will benefit from a reduction in energy costs to help combat rising energy costs, details of the proposed scheme have now been released. Under the scheme, a discount will be automatically applied to the bills of those businesses that are eligible to receive it, namely businesses that … Continue Reading

Support for businesses following the UK government’s announcement about help with energy costs

Last week, the new Prime Minster announced a 6 month scheme to help businesses with rising energy costs.  Although further details are awaited, the scheme is likely to reflect the support being provided to consumers, by offering a guarantee that discounts the unit costs for gas and electricity.  Recognising that businesses have not benefitted from … Continue Reading
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